Fuel prices to rise on Wednesday

Fuel prices will increase in Namibia from midnight on 2 September, with diesel prices rising by N$1.60 per litre and petrol by 60 cents.

The Ministry of Industries, Mines and Energy said its September 2026 fuel price review had resulted in adjustments to pump prices. The price of ULP95 will increase by 60 cents per litre, while Diesel 50ppm and Diesel 10ppm will each rise by N$1.60 per litre. At Walvis Bay, the revised prices will be N$25.08 per litre for Petrol 95, N$27.86 for Diesel 50ppm and N$27.96 for Diesel 10ppm. Prices elsewhere in the country will be adjusted accordingly. The Road User Charge Levy will also increase by 30 cents per litre, from N$2.43 to N$2.73. The ministry said the increase was needed to fund national priority feeder road projects.

The ministry's calculations show that the average price of Petrol 95 between 1 and 25 August was US$122.947 per barrel, up 5.67% from the July average of US$116.803. The average price of Diesel 50ppm rose by 11.29%, from US$145.298 per barrel in July to US$161.708 in August. Diesel 10ppm increased by 11.42%, from US$145.944 to US$162.606 per barrel over the same period. The Namibian dollar strengthened against the US dollar during the review period. Between 1 and 25 August, the average exchange rate was N$16.1974 to the US dollar, an appreciation of about 1.61% compared with the July average of N$16.4627.

The ministry attributed the fuel price increases to volatility in international oil markets, geopolitical tensions in the Middle East and disruptions to crude oil flows through the Strait of Hormuz. It said Brent crude prices eased towards the end of the review period amid renewed expectations that the Strait of Hormuz could reopen. However, physical oil flows and vessel movements remained constrained, limiting the impact of lower crude prices on delivered petroleum costs. International petroleum product and free-on-board prices were affected by both crude oil price movements and continuing supply and logistical risks. Tanker freight rates also remained high as vessel availability tightened, voyage distances increased and shipowners demanded higher risk premiums for operating in and around affected areas.